ProShares UltraShort Consumer Services (SCC)

Overview

ProShares UltraShort Consumer Services (SCC) seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Consumer Services Index. It is a leveraged ETF designed for sophisticated investors seeking short-term exposure to the consumer services sector. The fund achieves this by using financial instruments such as swaps, futures contracts, and other derivatives.

Reputation and Reliability

ProShares is a well-known issuer of leveraged and inverse ETFs, with a reputation for innovation and providing tools for sophisticated investors.

Management Expertise

ProShares has extensive experience in managing leveraged and inverse ETFs, requiring specialized knowledge of derivatives and market dynamics.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Consumer Services Index.

Investment Approach and Strategy

Strategy: The ETF uses a leveraged inverse strategy to achieve its investment objective, meaning it aims to deliver twice the opposite of the daily return of the underlying index.

Composition The fund primarily uses derivatives, such as swaps and futures contracts, to gain exposure to the inverse performance of the consumer services sector.

Market Share: SCC's market share is relatively small compared to broader consumer sector ETFs due to its specialized leveraged and inverse nature.

Total Net Assets (AUM): 19420000

Key Competitors

• ProShares Short Consumer Services (SCC)
• Direxion Daily Retail Bear 3X Shares (RETS)

Competitive Landscape

The competitive landscape includes other leveraged and inverse ETFs targeting similar sectors. SCC distinguishes itself through its specific focus on consumer services and its -2x leverage factor. The advantage it has is to the exposure of the specific consumer services sector and the disadvantage is the high-risk and volatility of leveraged inverse ETFs.

Historical Performance: Due to its leveraged and inverse nature, historical performance is highly volatile and depends on the performance of the Dow Jones U.S. Consumer Services Index.

Benchmark Comparison: Performance should be compared to -2x the daily return of the Dow Jones U.S. Consumer Services Index, taking into account compounding effects and fees.

Expense Ratio: 0.95

Average Trading Volume

Average trading volume varies, but generally is moderate and should be checked regularly to ensure efficient trading.

Bid-Ask Spread

The bid-ask spread can fluctuate based on market conditions and trading volume, which impacts the cost of trading.

Market Environment Factors

Economic indicators, consumer spending trends, and retail sector performance significantly impact SCC's returns.

Growth Trajectory

Growth trends are directly tied to the inverse performance of the consumer services sector and overall market volatility. There are no changes to the strategy and holdings.

Competitive Edge

SCC provides a specific and targeted way for investors to express a short-term bearish view on the consumer services sector with double leverage. It allows for precise control over exposure to this specific area of the market. The fund leverages ProShares' expertise in creating and managing leveraged and inverse ETFs. The -2x leverage can potentially amplify returns when the consumer services sector declines, but also significantly increases risk if the sector rises.

Volatility

SCC exhibits high volatility due to its leveraged and inverse nature, making it unsuitable for risk-averse investors.

Market Risk

The primary risk is the potential for significant losses if the consumer services sector performs positively, due to the inverse leverage.

Ideal Investor Profile

Suitable for sophisticated investors with a high-risk tolerance who understand leveraged and inverse ETFs and have a short-term bearish outlook on the consumer services sector.

Market Risk

Best suited for active traders seeking short-term tactical positions rather than long-term investors.

ProShares UltraShort Consumer Services (SCC) is a leveraged inverse ETF designed for sophisticated investors seeking to profit from short-term declines in the consumer services sector. The ETF is extremely volatile and is not suitable for risk-averse investors. It offers -2x daily inverse exposure to the Dow Jones U.S. Consumer Services Index using derivatives. Due to compounding, returns over periods longer than one day can differ significantly from -2x the indexu2019s cumulative return. Therefore, it is a tool for short-term speculation, not long-term investment.

Data Sources:

• ProShares website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Leveraged and inverse ETFs are complex instruments and involve significant risks. Investors should conduct their own due diligence before investing.